This service account insists on originality. The author is Zhang Xiaoming, partner of Zhuozhi (Vietnam) Accounting Firm, three years of multinational enterprise management experience, six years of listing audit experience, five years of entrepreneurial experience, Chinese certified public accountant (CPA), international certified public accountant (ACCA) ). WeChat: hy945568

In order to promote the development of production, part of the income of business units and individuals shall be included in the state finances, to ensure that the contributions of various economic components are fair and reasonable, and the interests of the state, collectives and workers are organically combined; according to the Constitution of the Socialist Republic of Vietnam Article 80 and Article 83: This law provides for income tax.

Chapter One General Provisions

Article 1 Units and individuals belonging to various economic sectors (hereinafter referred to as business units) that obtain income from production, construction, transportation, commerce, catering, and service activities on the territory of Vietnam must pay income tax in accordance with the provisions of this law.

Article 2 The following business activities are not within the taxable scope of this law: 1. Business activities that fall within the income taxable scope of the "Foreign Investment in Vietnam Law".　　

2. Agricultural production activities that fall within the taxable scope of agricultural tax.

Article 3 Business units have the obligation to declare and pay taxes in accordance with the provisions of the Income Tax Law.

Article 4 Tax evasion, tax arrears and other acts that violate the provisions of this law are strictly prohibited.

Article 5 State agencies, social organizations, armed forces units and all citizens have the responsibility to assist tax authorities and tax officials in performing their tasks.

Chapter II Tax Calculation Basis and Income Tax Table

Article 6 The tax calculation basis is the total annual taxable income (including main and incidental business activities, current and temporary business activities) and tax rate.

Article 7 Taxable income 2 Total operating income 1 Various legal and reasonable operating expenses related to taxable income of the business entity in the same period + other income.

Article 8 The total business income used to calculate the taxable income is realized, and all sales income, processing fees, and service fees are used as the basis for the calculation of business income tax and special sales tax.　　 Other income includes bank interest, associate activities, lease of property, liquidation of property, income from transfer of property and other financial income.

Article 9 The calculation of taxable income to deduct various legal and reasonable expenses shall be stipulated in accordance with the following principles:

1. The fixed assets used in business activities must be deducted from depreciation and operating expenses. The depreciation rate of fixed assets uniformly implements the system prescribed by the state, and must accurately reflect the degree of depletion of fixed assets.　　

2. Expenses on raw materials, fuels, and energy related to taxable income used in business production are calculated based on reasonable consumption and the actual price of the unit’s warehouse; 　　

3. The payment of wages, wages and payments with wage nature must be determined based on the nature of the industry, wage quotas, unit product wages in line with social labor productivity, economic benefits, and reasonable relationships among industries belonging to various economic components.　　 The wages and wages received by self-employed households and business owners in accordance with the provisions of paragraph 3 of this article shall not be included in the deduction of taxable income.　　

4. All other expenditures must be legal and reasonable:

①Management expenditure; 　　　　

② Expenses for purchasing technical materials, applying for invention and process licenses, and other technical services; 　　　　

③ Expenses directly related to product sales or service provision; 　　　　

④Social insurance money, property insurance money; 　　　　

⑤Other reasonable and legal expenses; 　　

5. All taxes and handling fees that have been paid and related to business activities, except income tax; 　　

6. Various fines and other expenditures that are inconsistent with state regulations shall not be included in production and operation expenditures. The Council of Ministers makes specific provisions on reasonable and legal expenditures in production and operation, and determines the amount of taxable income in accordance with the principles set out in this article.

Article 10 Units and individuals (except small business households and wholesale households) shall pay income tax at a fixed tax rate based on the annual taxable income. The regulations are as follows:

1. Electricity, mining, metallurgy, machinery, basic chemicals, fertilizers, pesticides, building materials, forestry and aquatic products mining and processing, construction, and transportation industries: 30%.　　

2. Light industry, food industry and other production: 40%.　　

3. Commercial and catering industry. Various service industries: 50%.　　 For private business households, if their monthly income exceeds VND 6 million, in addition to paying income tax at a fixed tax rate, they must also pay supplementary income tax in accordance with the provisions of the State Council.

Article 11　　

1. Small and medium-sized business households pay income tax at the tax rate of contracted business income. The regulations are as follows: 　　　　

①Production, construction, transportation: 1%; 　　　　

②Business, catering, and service industries: 2%.　　

2. Small business households refer to business households with monthly average taxable business income in the following industries: 　　　　

①The monthly turnover of production and commercial industries is below 3 million VND; 　　　　

②The monthly turnover of the catering industry is below 1.5 million VND; 　　　　

③The monthly turnover of production and processing, transportation, construction, and service industries is below 750,000 VND.

Article 12 When necessary, the State Council may decide to amend or supplement some of the income tax rates stipulated in Articles 10 and 11 of this Law, and report to a recent meeting of the National Assembly for approval.